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DECLARATION
empirical findings in this report are based on the data collected by me. It was not
copied from any other project.
CERTIFICATE
This is to certify that the project entitled, A study on consumer attitudes towards
online shopping, is a bonafide work done by Ms. Phani Snigdha Mullapudi,
Regd No: 1214415118, and is submitted in partial fulfillment of the requirements
for the degree of Bachelor of Business Administration (Business Analytics) of
GITAM University.
Place: Visakhapatnam
Date:
Associate Professor
ACKNOWLEDGEMENT
It is a genuine pleasure to express my deep sense of thanks and gratitude to my
principal Prof. P. Sheela, GITAM Institute of Management, GITAM University,
Visakhapatnam, Andhra Pradesh for her continuous support and guidance
throughout my project. Her prompt inspirations, timely suggestions with kindness,
enthusiasm and dynamism have enabled me to complete my thesis.
And also I take this moment to thank my mentor, philosopher and guide Dr. D.
Vijaya Geeta, Associate Professor, GITAM Institute of Management, GITAM
University, Visakhapatnam, Andhra Pradesh. Her dedication and keen interest
above all her overwhelming attitude to help her students had been solely and
mainly responsible for completing my work. Her timely advice, meticulous
scrutiny and scholarly advice have helped me to a very great extent to accomplish
my task.
I perceive as this opportunity as a big milestone in my career development. I will
strive to use gained skills and knowledge in the best possible way, and I will
continue to work on their improvement, in order to attain desired career objectives.
Hope to continue cooperation with all of you in the future.
CONTEXT
Pg.NO
CHAPTER 1:
INTRODUCTION
E-COMMERCE CONCEPTS
7-10
10-11
CHAPTER 2:
METHODOLOGY
12-15
RESEARCH PROBLEM
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
RESEARCH DESIGN
LIMITATIONS OF THE STUDY
13
13
13
14
14
15
CHAPTER 3:
ANALYSIS
16-33
CHAPTER 4:
OBSERVATIONS
34-38
35
SUGGESTIONS
36
CONCLUSION
37
BIBLIOGRAPHY
38
LIST OF TABLES:
Table number
Table name
Cro
2.1
2.2
2.3
Page number
22
23
24
25
26
2.4
2.5
27
2.7
2.8
29
30
31
2.6
28
32
33
LIST OF GRAPHS:
Graph number
Graph name
Page number
1
2
3
Respondents age
Respondents gender
Respondents educational
qualification
Respondents occupation
Respondents monthly income
17
18
19
4
5
20
21
CHAPTER 1
INTRODUCTION
search providers and others in providing marketing to SMEs. Customer ratings are
a key element of the marketplaces, enabling SMEs to build a reputation at low cost
relative to the offline environment. This element of reputation may be achieved
quickly (just one piece of feedback generates a rating) and is tied to particular
platforms (i.e. ratings are non-transferable).
In 1990, Tim Berners-Lee created the first World Wide Web server and browser in
UK.1 It opened for commercial use in 1991. In 1994 other advances took place,
such as online banking and the opening of an online pizza shop by Pizza Hut.1
During that same year, Netscape introduced SSL encryption of data transferred
online, which has become essential for secure online shopping. Also in 1994, the
German company Intershop introduced its first online shopping system. In 1995,
Amazon launched its online shopping site, and in 1996, eBay appeared.
Originally, electronic commerce was identified as the facilitation of commercial
transactions electronically, using technology such as Electronic Data Interchange
(EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late
1970s, allowing businesses to send commercial documents like purchase orders or
invoices electronically. The growth and acceptance of credit cards, automated teller
machines (ATM) and telephone banking in the 1980s were also forms of electronic
commerce. Another form of e-commerce was the airline reservation system
typified by Sabre in the USA and Travicom in the UK. From the 1990s onwards,
electronic commerce would additionally include enterprise resource planning
systems (ERP), data mining and data warehousing.
In 1990, Tim Berners-Lee invented the World Wide Web browser and transformed
an academic telecommunication network into a worldwide everyman everyday
communication system called internet/www. Commercial enterprise on the Internet
was strictly prohibited by NSF until 1995.2 Although the Internet became popular
9
worldwide around 1994 with the adoption of Mosaic web browser, it took about
five years to introduce security protocols and DSL allowing continual connection
to the Internet. By the end of 2000, many European and American business
companies offered their services through the World WideWeb. Since then people
began to associate a word "ecommerce" with the ability of purchasing various
goods through the Internet using secure protocols and electronic payment services.
E-COMMERCE CONCEPTS:
E-Commerce or Electronics Commerce is a methodology of modern business,
which addresses the need of business organizations, vendors and customers to
reduce cost and improve the quality of goods and services while increasing the
speed of delivery.
E-commerce refers to the paperless exchange of business information using the
following ways:
Electronic Data Exchange (EDI)
Electronic Mail (e-mail)
Electronic Bulletin Boards
Electronic Fund Transfer (EFT)
Other Network-based technologies
Features
E-Commerce provides the following features:
Non-Cash Payment: E-Commerce enables the use of credit cards, debit cards,
smart cards, electronic fund transfer via bank's website, and other modes of
electronics payment.
10
11
CHAPTER 2
METHODOLOGY
12
RESEARCH PROBLEM:
CONSUMER ATTITUDE TOWARDS ONLINE SHOPPING
NEED OF STUDY:
In todays busy life, online shopping has emerged as one of the most convenient
way of shopping by remaining in the comforts of ones home. With online
shopping, one has now many choices in terms of brands, stores, price and mode of
payment. However, online shopping cannot give the benefits of physical feel and
touch that one may experience with offline shopping. In this context, the study was
undertaken to understand the consumers perception towards online shopping and
what drives them towards this approach of shopping. Such study will help in
coming up with strategies required to come up better marketing programme for any
upcoming ecommerce site.
OBJECTIVES:
1. To know which age group people uses online shopping very often.
2. To know the perspectives of respondents towards online shopping according
to their occupation.
3. To know which is the most used site according to the gender.
4. To know which commodity is preferred mostly according to the age.
5. To know which commodity is preferred mostly according to thegender.
13
RESEARCH DESIGN:
Sampling Area:- The survey is conducted in Vizag.
Sample size:- The sample size of the survey is 50.
Sampling Technique:- Random Sampling
Primary Data:-It was collected from the respondents through structured
questionnaire.
Secondary Data:- It was collected from internet and other websites.
14
15
CHAPTER 3
ANALYSIS OF THE DATA
16
AGE
35
30
25
20
count
15
Total
10
5
0
18-22
23-27
28-32
33-37
38-42
Age group
17
GENDER
26.5
26
26
25.5
25
count
24.5
24
24
23.5
23
1
2
Gender
Total
EDUCATIONAL QUALIFICATION
26.5
26
26
25.5
25
count 24.5
24
Total
24
23.5
23
2
Educational Qualification
19
OCCUPATION
40
35
35
30
25
Count
20
15
Total
9
10
0
1
Occupation
MONTHLY INCOME
40
36
35
30
25
Count
20
15
Total
10
5
0
3
Monthly Income
Table 1:
Usage of online shopping during last year according to their age.
Count
How many times do you have online shopping during last year?
0-5
Age
5-10
10-15
Total
above 15
18-25
27
40
26-35
36-50
30
50
Total
The above table represents the usage of online shopping among various age
groups.
From the sample size taken, 40 respondents belong to the age group of 1825, 6 respondents belong to 26-35 and 4 belong to 36-50 age group.
Online shopping is done by 9 members 0-5 times, 30 members 5-10 times,
6 members 10-15 times and more than 15 times by 5 members.
22
We know that respondents of age 18-25 use online shopping for 0-5, 5-10,
10-15 and above 15 times at 10%, 67.5%, 12.5% and 10% respectively.
From the age group of 26-35, the respondents use online shopping for 0-5, 510, 10-15 and above 15 times at 66.67%, 1.67%,0 and 1.67% respectively.
From the age group of 36-50, the respondents use online shopping for 0-5, 510, 10-15 and above 15 times at 25%, 50%, 25% and 0 respectively.
Table 2.1:
Perception towards Shopping on internet saves time according to
occupation
Occupation * Shopping on internet saves time.
Cross tabulation
Count
Shopping on internet saves time.
Total
Strongly
agree
Occupation
Student
Agree
Neutral
12
10
29
Employee
11
Business
Housewife
17
22
11
50
Total
Among the employees, who strongly agree, agree and neutral are 18.18%,
72.72% and 9.09% respectively.
Among the business people, strongly agree, agree and neutral are 25%,
37.5% and 37.5% respectively.
Among the housewives, who strongly agree, agree and neutral are 50%, 50%
and 0 respectively.
Strongly
agree
Occupation
Agree
Neutral
Disagree
disagree
Total
Student
12
29
Employee
11
Business
Housewife
10
21
13
50
Total
strongly disagree the statement are 27.27%, 27.27%, 27.27%, 18.18% and 0
respectively.
Among the business men,who strongly agree, agree , neutral, disagree and
strongly disagree the statement are 12.5%,62.5%,2%,0,0 respectively.
Among the housewives,50% strongly agree and the remaining agree the
statement.
Agree
Neutral
Disagree
disagree
Total
Student
11
29
Employee
11
Business
Housewife
21
10
50
Total
25
Table 2.4:Perception towards The information given about the product on the site is
sufficient according to their occupation
Occupation * The information given about the product on the site is sufficient
Cross tabulation
Count
The information given about the product on the site is sufficient
Strongly agree
Occupation
Total
Agree
Neutral
Disagree
Total
Student
11
29
Employee
11
Business
Housewife
17
18
50
Among the businessmen, who strongly agree, agree, neutral, and disagree
the statement are 25%, 37.5%, 25% and 12.5% respectively.
Among the housewives, 50% strongly agree and the other 50% is neutral.
Table 2.5:Perception towards I prefer cash on delivery than payment via credit/debit
card according to their occupation.
Occupation * I prefer cash on delivery than payment via credit/debit card. Crosstabulation
Count
I prefer cash on delivery than payment via credit/debit card.
Strongly agree
Occupation
Total
Student
Agree
Neutral
Total
Disagree
12
12
29
Employee
11
Business
Housewife
16
19
11
50
27
Among the housewives, 50% agree and the other 50% is neutral.
Strongly
agree
Occupation
Total
Agree
Neutral
Disagree
disagree
Student
10
29
Employee
11
Business
Housewife
13
18
11
50
Total
Among the housewives, 50% strongly agrees and the other 50% agrees to
the statement
Table 2.7:Perception towards A long time is required for the delivery of products and
services according to their occupation.
Occupation * A long time is required for the delivery of products and services Cross
tabulation
Count
A long time is required for the delivery of products and
services
Total
Strongly
agree
Occupation
Strongly
Agree
Neutral
Disagree
disagree
Student
11
28
Employee
11
Business
Housewife
12
16
11
49
Total
respectively.
Among the housewives, 50% strongly agrees and the other 50% agrees to
the statement.
Table 2.8:Perception towards Select your favorite online site according to their
occupation.
Occupation * Select your favorite online site. Cross tabulation
Count
Select your favorite online site.
Flipkart
Occupation
Ebay
Jabong
Total
Amazon
Snapdeal
Student
29
Employee
11
Business
Housewife
13
13
50
Total
The above table represents the favorite online sites of the respondents.
Among the students, the favorite online site for majority is ebay with
27.58% and the next sites are flipkart and amazon with 24.13%
Among the employees, the favorite online site for majority is ebay with
36.36% and the least favorite site is jabong.
Among the businessmen, the favorite online sites for majority are flipkart
and jabong with 25%.
Among the housewives it is Flipkart and jabong.
30
Total
18-25
26-35
36-50
8
3
1
12
shopping?
Clothes
Gadgets
16
5
2
23
Total
Furniture
3
2
1
6
6
2
1
9
33
12
5
50
The above table represents the commodity people prefer basing on their age.
We can know that from the sample size taken the respondents of age 18-25,
26-35, 35-50 are 33, 12 and 5 respectively.
Then the people 18-25 years of age use clothing at 48.48%, books at24.24%,
gadgets at 9.09% and furniture at 18.18%.
The people 26-35 years of age use clothing at 25%, books at 41.67% gadgets
and furniture at 16.66%.
The people 36-50years of age use clothing at 20%, books at 40% gadgets
and furniture at 20%.
31
Total
Ebay
Jabong
Amazon
Total
Snapdeal
Male
26
Female
24
13
13
50
The above table represents the favorite online sites of the respondents.
From the above table we can say that 26.9% of the male prefer Flipkart and
only 15.38% prefer Amazon and Snapdeal.
When we look at the female preferences, we can say that 33.33% prefer
Ebay and only 8.33% prefer Snapdeal.
32
6
6
12
shopping?
Clothes
Gadgets
12
3
11
3
23
6
Total
Furniture
5
4
9
26
24
50
33
CHAPTER 4
OBSERVATIONS AND CONCLUSION
34
OBSERVATIONS:
From this research I came to know about the important conclusion regarding
the customer attitude towards online shopping.
I came to know that the people of age group18-25 frequently use of online
shopping than the people of age group 36-50.
Many students have positive attitude towards online shopping as they feel
that it saves their time and they can also shop at any point of the day but
sometimes they also feel that it is risky.
Employees also feel that they can save their time by online shopping as they
can drop at any hour of the day.
Most of the male respondents prefer Flipkart whereas female respondents
prefer Ebay.
Most of the male and female respondents prefer to buy clothes online and
the next preferred category is gadgets.
38% of the respondents prefer cash on delivery than payment via credit/debit
card.
32% of the respondents believe that it takes long time for the delivery of the
goods.
More than 50% of the people prefer sites like Flipkart and Ebay.
35
SUGGESTIONS:
Online shopping retailers should ensure that their site loads quickly. If
the website loads too slowly, customers wont wait around.
Customers should be able to easily navigate the website.
They should make their site attractive.
Include customer reviews.
Should make it easy for the customers to contact.
They should offer free shipping.
They should ensure that the delivery of the goods should be faster.
Checking out should be simple.
36
CONCLUSION:
This research shows that online shopping is having a very bright future in India.
Perception towards online shopping is getting better. With the use of internet,
consumers can shop anywhere, anytime and anything with easy and safe payment
options. Consumers can compare the products on different sites.
This study mainly focuses on the consumer attitudes towards online shopping. The
information search is the most important aspects that helps the customer to find
suitable products for their needs. The online retailers have to enhance and improve
the information supporting system by providing detailed information about the
products.
For the evaluation stage, customers more think a lot of reputation from the ecommerce website and the payment security for the purchase stage. At the post
purchase stage, the factor of after services is the most concerned matter. Therefore
all the factors that are influence or prevent the people from using online shopping
need to be carefully taken and care and all the online retailers should try to
improve the standards of their sites.
37
38